New York, Feb 9, 2026, 11:00 EST — Regular session
- Netflix shares slid roughly 2% after news emerged that U.S. antitrust regulators are reviewing its bid for Warner Bros, raising investor concerns.
- The DOJ’s civil subpoena throws fresh uncertainty on when the deal might close, what remedies could be required, and if approval will come at all.
- Eyes are on Paramount as its Feb. 20 tender-offer deadline nears, with traders also tracking any hints of a March shareholder vote over at Warner.
Netflix shares dropped 2.1% to $80.44 late Monday morning, as the streaming company’s proposed acquisition of Warner Bros Discovery assets faces increased scrutiny from U.S. regulators. The move continues a volatile stretch for Netflix.
The Warner deal is now the key wild card for Netflix’s 2026 outlook—at stake is the chance to snag a heavyweight studio and streaming catalog, minus the baggage of drawn-out litigation. But if regulators dig in, investors could face a longer wait, new hurdles, or a price tag that tops expectations.
It’s hitting a market that’s been swift to smack down packed, high-volatility trades. Investors, stung by recent swings, have been shifting into less expensive pockets of the market.
Reuters said Friday that the U.S. Department of Justice is now looking into whether Netflix engaged in anti-competitive behavior during a merger review, according to the Wall Street Journal. Investigators sent a civil subpoena to another entertainment player, requesting details on “any other exclusionary conduct” by Netflix that could indicate it holds entrenched market power. Reuters
Netflix says it isn’t aware of any probe into its business apart from the usual merger review, according to an emailed statement from a company spokesperson to Reuters. The company also said it’s “constructively engaging” with the DOJ. Reuters
Steven Sunshine, counsel for Netflix, said the company sees the department’s move as a routine review. He added they haven’t been notified about any distinct “monopolization” investigation—the term used for a larger case accusing a company of illegal monopoly behavior that goes beyond just the merger. Reuters
Reuters says the DOJ is weighing a rival offer from Paramount Skydance, which keeps the Warner outcome up in the air and adds to the difficulty for investors trying to figure out whether a straightforward deal is possible.
Time’s pressing for traders. Warner could put the Netflix deal to a shareholder vote in March, according to Reuters, and Paramount has pushed its tender offer deadline out to Feb. 20.
For Netflix shareholders, the risk is straightforward. Regulators might push for concessions that chip away at the value of the deal, or take legal action to block it entirely—delaying the process while costs add up. Even without court action, a drawn-out review can tie up Netflix’s leadership and keep shares reacting to every headline.
The focus shifts away from just streaming figures this quarter. Investors are now scanning for hints from the DOJ on how wide its review could go. They’re also looking to see if Paramount can make any headway before Feb. 20, and if Warner pins down a concrete vote date for March.
